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Solar energy: combating climate change cleanly

German Solar Industry Association (BSW) / European Photovoltaic Industry Association (EPIA)

Solar energy is gaining popularity as a modern, sustainable energy source. The photovoltaic (solar electric) world market is growing by 35% annually and the solar thermal (solar heating and cooling) market is also benefiting from double digit growth rates. Solar energy will play a crucial role in the future energy supply.

The European Photovoltaic Industry Association (EPIA) and the German Solar Industry Association (BSW) are encouraging a world energy policy change because:

1. Combating climate change requires dramatic reductions of greenhouse gas emissions;
2. Fossil and nuclear fuels are finite and noticeably becoming scarce;
3. An affordable supply of fossil-based energy resources is becoming difficult to secure.

The only sustainable solution to these problems is to replace fossil fuels with renewable energy sources (RES). The sun sends more energy to the earth in one hour than the entire population of the world consumes in one year – not using this clean source of energy is unjustifiable.

RES have many advantages, they:

  • have unlimited availability;
  • protect the climate by replacing fossil fuels;
  • do not pose any security risks;
  • are available in every country worldwide;
  • support national and local economies and provide new jobs;
  • reduce a country’s dependency on energy imports;
  • increase energy supply security;
  • support rural development due to their decentralised nature;
  • are the cheapest energy source in the long term; and are sustainable.

A mix of different RES will soon replace a strongly growing share of fossil and nuclear power. Solar energy will play a major role as it is globally available, flexible in size and application and can fit into the needs of different countries.

A wide range

Grid-connected photovoltaic (PV) applications feed solar electricity from 90% of the world’s PV systems into a grid. The size of gridconnected PV systems starts at 1 kilowatt (domestic systems) and reaches up to 10,000 kilowatts (commercial plants).

Off-grid photovoltaic applications provide households and villages with lighting and communication, drive water pumps, refrigerate medical supplies, etc. Off-grid photovoltaics can easily provide sustainable electrification for more than 1.4 billion people in rural areas with no access to electricity.

Solar thermal collectors convert solar energy directly into heat. Temperatures usually range from 30°C to 100°C for domestic warm water and space heating as well as for commercial applications. Special collectors are able to provide temperatures up to 200°C for process heat applications. By using a thermal-driven cooling chiller, solar heat can also be used for cooling purposes.

Competitive markets

Solar energy is freely available, but an upfront investment in solar technology is required. Strong global market growth and rapid technological development mean solar systems are becoming cheaper. The price for PV modules has been reduced by more than 60% since the beginning of the 1990s, making solar electricity and heat already cost competitive in some regions. Within the next decade, it will become cheaper for most consumers to produce solar electricity than buy it from the grid.

Can we afford to wait? In order to replace a considerable share of fossil fuels, capacity and know-how have to be built up for the distribution, planning, installation, maintenance and production of solar systems. But this needs time. Governments should start building up solar markets today so the expertise and capacity are ready for the time when solar energy is largely cost-competitive.

Market development tools

Solar markets will only grow if appropriate policies help to overcome today’s barriers. A successful market entrance policy needs a combination of support programmes, reduction of legal and other obstacles, public awareness campaigns, training of experts; and a clear goal for a solar policy. The most important policy tool for the promotion of RES electricity in Europe is a simple guaranteed feed-in tariff where:

  • everybody has the right to connect a PV system to the grid
  • everybody has the right to feed solar electricity into the grid
  • every producer receives a fixed tariff over a fixed time period for
  • every kilowatt hour (kWh) of solar electricity
  • the costs for the scheme are borne by all electricity consumers
  • through a small increase of their electricity bill

Solar thermal markets can be stimulated by subsidy programs, tax reductions and solar obligations. In some European countries solar thermal obligations are under development and the European Commission is preparing a heating and cooling directive for RES. The course for the solar age is being set today. As the European Photovoltaic Industry Association (EPIA) and the German Solar Industry Association (BSW), we are strongly positioned with a wealth of experience in developing markets and building capacity.

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